Earnings Season Off To A Great Start. Google Is Back On The Saddle!

I’m back! My Internet was fixed today. Something about the frequency wasn’t in the proper range to pick up the signal. I’m glad to be back in action!

Google jeez! Nice job on a blowout quarter!

Well folks earnings season is back better than ever. Some of the larger companies have already reported their earnings. JP Morgan (JPM) and Intel (INTC) were just a couple of recent out performers that reported better than expected earnings earlier this week. Intel basically saved itself from being cut from the stock prediction game. This stock has performed poorly, but after their recent earnings I believe this stock will be just fine. JP Morgan had some bright points, however from the recent worries about the mortgage mishap with the foreclosure papers the banks have been receiving an extreme amount of pressure. This debacle could cost the banks billions of dollars. With that being said even if the banks report good earnings over the next couple of weeks I would steer clear for awhile until the smoke clears.

Next let's move onto Google.  This is my first time mentioning this company and it won't be the last.  What a spectacular showing by Google (GOOG) reporting a great number after the bell today. Google destroyed analysts estimates for this quarter. Analysts were expecting $6.69 a share. Google had an upward surprise of $7.64 a share excluding items. This company is making some money! To top it off they added more than 1,500 employees in the 3rd qtr.  Adding jobs and making more money now that's a recipe for success.  Maybe the government should take a few lessons from the likes of Google. I plan on doing some more research on Google so stay tuned. This company is definitely worth a look. Please don’t buy this stock tomorrow as it has already run up 9% in after hours. You will lose money!

Next on deck we have my following favorites reporting next Tuesday

Apple (AAPL) Tuesday 10/19/10 Apple shouldn’t have a problem topping estimates and should get a nice pop tomorrow from Google’s recent earnings. Don’t be surprised if this stock sells off after they report earnings. Apple has had a great run. There will be profit taking!

Weatherford International (WFT) Tuesday 10/19/10 Similar to Apple, Weatherford has run up quite nicely up 26% from 3 months ago. Earnings should be just fine and some profit taking will take place. Wait until the selling is done and buy some 5-10% lower.

In closing I would like to give a few words of advice. We as individuals work very hard for our money. I say take some pressure off and let great companies like Apple and Caterpillar do the heavy lifting. Large companies generate tons of money and they give us a perfect opportunity to benefit from their success by investing in their stock. It’s as simple as that!

Have a great night!

Clay-

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